Crocs Takes on China’s Copycats

4/11/2013 12:51AM

Footwear maker Crocs counts China one of its biggest markets, but its sales are threatened by lookalike products from many Chinese companies. Crocs CEO John McCarvel talks to Kathy Chu about why the company aggressively fights counterfeiting.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... going for Western retailers day and age ... today ... we need John McCarvel cel of crime ... so John ... and Asia has been a very Hochman region for Western retailers to expand in the city ... we have the slowdown of easing up on news nowadays and turning it into the dam ... to India ... that said Dominique Spillane my way ... I know it's ... a silly grin like to stress that people ... don't really realize the crisis but ... eight years old ... if you think about our first year in Asia was two thousand and five SOEs Abram ... in this is still an emerging market for for us from a Christian point retail stores ... new products ... aam ... a lot a room for Drew to press here ... film where I'm the most promising markets for growth the onthe feet I now ... the second-largest economy in the world that ... the thigh strain and warehouse Piecyk wrote in a region that we've seen that Japan in the early days of cuts two thousand and five two thousandsix seven ... you really be something fun and innovative for the Japanese consumer ... lightweight colorful come to know we see that can carry over ... Korea and China have been in the new cooker market stress ... for our technocratic piano ... mainly spring summer types of footwear in anywhere where it's warm Southeast Asia ... economists have done very well for us anything going in to the Middle East now ... which is a great ... potential market for its going for ... luckily that to try next time I know counterfeiting is that the problem that crops and China ... it took me a little bit about talk strategy ... why is it important for crops to fight ... counterfeiting is the the company guys ... some companies have the philosophy ... it's gonna happen anyway you find it ... others are in the spring ... the car has been very proactive my ... eyes peeled for us we were such a mass market product ... and if you think about the type of footwear that we make and consumers that were trying to track ... next-generation middle-class Chinese ... you know families consumers ... it's important is that we fight that battle and that they understand we are ... and what we stand for ... we have a lot of time and effort to come in to establishing a parameter ... we have to protect it for the long term ... I pray their whole counterfeit products to worries that is from the feedback ... in ... China for years I think in a panic ... Lloyd yellowtail a very authentic from the US and ... in Eddie Jones cited in a maddening and you know maneuver and counterfeits Durston ... um half the shoes in the store are our products we Meetic ... half are new styles that we even may ... paint eggs are various and take it um they copy everything copy of the website ... aam also ... so we've got along ... a can of ... standing issue with a can of a local company okie ... we just absolutely coffees their website ... word for word you open a par with say he opened their website ... and they just copied and forbid know we we find this to be flattering that people ... like we were doing ... but ... there has to be a line where do you have a very immature establishing in ... this a lot of space open for people to establish other brands without ... you know ... doing what we see today ... let's talk about production for a minute ... a lot of company stock is the produce in the fact that the world just nine at ... prices well on why the Leat's Alliance boldly placed tiny ... than affecting Contra don't Herndon has an effect ... we count shares today that eighty percent for protection so ... last year sales about fifty million years would build a ten million pairs of our own factories in Europe in that ... in Mexico ... of those forty million pairs of shoes that we build most of those are built in southern China ... but with their Taiwanese partners we are moving to fifteen percent overproduction and Vietnam ... of this year ... partly ... because of the week the Terps and its work rest to ... build products in China in chip into emerging markets like Brazil ... found that the these are just too tired or even out tariffs ... on leather products bill intended to go to Japan ... it just creeps that ... kind of need for a second source in Asia where ... you know we don't have the same dynamics to import into new markets ... very interesting ... well John McCarvel at Cox CEO thank you for stopping by